Reports from the corridors of justice indicate an uptick in debt collection lawsuits being filed in Washington DC. The increase has prompted the branch of the D.C. Superior Court to add a work day to its already busy schedule. The Washington City Paper reports that 30% of residents in DC have debts placed in the collections. Most of those affected are people of color and stand a high risk of losing their wages, employment, savings and property. The risk of families losing possession normally arises when the debt becomes seriously delinquent and goes into collection. The 2016 the Urban Institute report shows glaring disparity in the wealth gap among Americans.
The wealth held by white families is said to be five and seven times greater than that held by Hispanic and black families respectively. The rise in collections lawsuits could also be as a result of changes in the jurisdictional limits instituted under the District of Columbia Judicial Financial Transparency Act. Following the changes, collection agencies are turning to small claims court as they are faster; apply lower filing fees and follow looser procedures when dispensing justice. Lawyers representing the people sued over debt are highly pessimistic and believe some of the lawsuits are flatly illegitimate as they are grounded on inaccurate and outdated information.
Consumers, on the other hand, are pointing fingers to collectors, questioning their motive and end game. Consumer advocates have also joined the fray with a proposal to reform the D.C. debt statutes. One of the proposals that has been forwarded is the D.C. Council Bill that seeks to amend the decades old debt collection law. The other is codifying protections to safeguard D.C. resident’s facing lawsuits as a result of unpaid bills. The D.C. Superior Court statistical reports show a noticeable increase in debt related court cases from 2016 to 2018. The number of new filings jumped from 5,580 in 2016 to 7,100 in 2017. This number rose to 9260 in 2018.
A mind boggling 8,300 collection cases were filed between January and March 2018. The Paper confirms that DC was ranked in the pole position nationwide as the most burdened state (District) when it comes to collection complaints per capita. The Consumer Financial Protection Bureau places the count at 1,200 complaints for every 100,000 people. Most of the lawyers who spoke to Washington City Paper want the debt problem addressed immediately to prevent families from falling deeper into the debt abyss. Affected households have had to endure many difficulties, with some forced to sell property or apply for an unyielding payday loan just to get by.
Across the nation, ProPublica reports that 4 million Americans had their wages garnished in 2013 for unpaid consumer debt. Besides the people of color, the most affected group of people are workers earning between $15,000 and $40,000 annually. A number of public and non-profit hospitals are also caught in the act. Some hospitals have gone to the courts to have patients propelled to pay their bills. This happens even to patients who qualify for financial assistance but are unable to file the paperwork due to one reason or the other. In another curious incident, a subprime lender that has since closed shop went overboard by seizing pay from active-duty soldiers.
All-Round Debt Resolution Service in California!
Debt watchers believe debt buyers are responsible for the meteoric rise in lawsuits because most of them use ill-conceived strategies to pursue debt. Following complaints from consumers, economic justice organizations like the National Consumer Law Center have been established to safeguard the rights of consumers. The California based debt collection firm, Pacific Collection Group stands out of the pack due to its commitment to good-natured financial resolution. PCG’s modus operandi is grounded in being persuasive, persistent and professional at all times. The support is critical in ensuring lenders and creditors get creative cash flow solutions when they need it most.
Founded in 1983, PCG boasts 16 partners and operates from 3 strategic locations, including San Bernardino, CA. The Pacific Collection Group is also committed to empowering the community through education. The company awards $1000 scholarship every year to the student selected by the scholarship panel. Information about the scholarship is available at PacificColelctionGroupScholarship.org. To contract the PCG debt collection experts, call the number 1-888-874-6979. You can also visit the company website and Facebook page for more details
